A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true? a.The company will decrease finished goods by $54,000. b.The company will recognize sales on the balance sheet of $150,000. c.The company will increase finished goods by $54,000. d.The company will recognize $96,000 in gross profit on the balance sheet.

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?

a.The company will decrease finished goods by $54,000.
b.The company will recognize sales on the balance sheet of $150,000.
c.The company will increase finished goods by $54,000.
d.The company will recognize $96,000 in gross profit on the balance sheet.
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